Here Is How To Earn Yields with Your XRP Holdings

The Flare Network team has emphasized that XRP holders can put their tokens to work and passively generate yield through their FAsset innovation.

The development crew behind the FAsset innovation recently took to X to orchestrate an Ask Me Anything (AMA) section regarding FAsset, seeking to clarify any ambiguity about its features and offerings.

According to the team, the action aligns with their continuous exploration of methods to enhance the FAssets system.

The FAssets project by Flare aims to imbue non-smart contract tokens like XRP, DOGE and BTC with smart contract functionalities. Through the minting process into FAssets, users gain the ability to employ these tokens within dApps on Flare or bridge them to other networks.

XRP Army Generating Yields on dApp with FAssets

During the AMA, an X user inquired whether FAssets merely involved the swift transfer of the tokens of value — specifically XRP, Bitcoin (BTC), and Dogecoin (DOGE) — on the Flare Network.

In response, the team explained that by minting BTC, XRP, and DOGE into FBTC, FXRP, and FDOGE, respectively, users can leverage them to earn yield or rewards in decentralized applications (dApps) on Flare and other blockchain networks.

◆ By minting BTC, XRP and DOGE into FBTC, FXRP and FDOGE, you are able to put them to work earning yield or rewards in dapps on Flare and other chains.https://t.co/SqXBYDrri4

— Flare ☀️ (@FlareNetworks) January 30, 2024

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Furthermore, the Flare team added that the possibilities include DeFi activities such as swaps, liquidity provision, lending with FAssets as collaterals, and numerous other options.

Another X user sought clarification on the origin of rewards for FXRP distributed to users, particularly questioning the native yield generation.

The team responded by explaining that when users mint FAssets, they incur a fee in the underlying assets. A portion of that fee is converted into FAssets and deposited into the collateral pool.

FAsset Foundation

Significantly, the FAssets system introduces smart contract functionality like yield generation to crypto projects such as XRP that do not natively support smart contracts.

According to the Flare crew, the FAsset innovation potentially unlocks the value of $800 billion in XRP, BTC, and Dogecoin.

Unlike other wrapped token systems for non-smart contract assets, FAssets distinguishes itself as trustless. This means that users are not vulnerable to the risk of depending on a centralized intermediary when utilizing their tokens in smart contracts.

Notably, the minted FXRP, FBTC, and FDOGE are ERC20 tokens readily available for use within decentralized finance applications or bridged to other blockchain networks.